Price cap set to fall by 7%

The domestic energy price cap is expected to fall by 7% when the regulator Ofgem publishes the updated figure for April-June this week.

Cornwall Insight predicts the cap will fall by £117 to £1,641 a year for a typical dual fuel household, driven mainly by the policy measures announced in the November Budget. These include the shifting of 75% of the Renewables Obligation costs from household energy bills into general taxation, and the decision not to extend the Energy Company Obligation beyond March 2026.

The forecast notes that wholesale gas and electricity prices for the cap period have risen slightly since the last prediction, with gas prices in particular having been volatile since the start of 2026 due to geopolitical factors.

“After two consecutive quarter-on-quarter increases in the cap, the anticipated decline is welcome news,” said Cornwall Insight.

However it pointed out that many business energy users have not received equivalent policy relief.